With the container freight rates on the Asia – Europe trade under severe pressure from overcapacity at the moment the order has flagged concern from market watchers. However, speaking exclusively to Seatrade Global, Li stressed China Shipping Container Line (CSCL) does not aim to increase its box capacity through the new order.
Rather the line plans to withdraw capacity of 66,000 teu this year - through retiring 10 vessels of 1,200 teu each and taking 54,000 teu worth of ships offhire – followed by removal of another 55,000 teu offhire in 2014, giving a total reduction of 121,000 teu, versus addition of only 92,000 teu through new vessels.
“The whole idea is not to expand capacity but to restructure the fleet in terms of greater efficiency,” said the China Shipping chairman. “By doing this and bringing in new vessels with lower fuel consumption and less environmental impact, we will not have a negative impact on the market.”
Chairman Li indicated that the vessels are costing $136.5m each, and will be delivered from end 2014 through mid 2015. They are to be deployed by CSCL on Asia-Europe trade - in joint service with Middle Eastern carrier UASC, expected to place a similar newbuilding order shortly.
Chinese yards tendered for the order, he disclosed, but the company’s newbuilding panel “finally chose a Korean yard.”
Guaranteed fuel efficiency was the major attraction of the design selected, he continued, as fuel consumption will be “maximum 200 tonnes a day, and maximum 150 tonnes a day when slow steaming at 17kts”. This works out less than the fuel burn of an older generation vessel of just 5,600teu, he added, showing “just what savings in terms of fuel consumption can be achieved”.
Design-wise the vessels are essentially the same dimensions as Maersk’s Triple-Es building at fellow Korean yard DSME, Mr Li said but can accommodate 400 teu more than those vessels’ stated capacity. They are also costing considerably less than the price tag of $180m apiece reported for the Maersk vessels (ordered in early 2011), he added.
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